Red tape cut down in PAYG budget review

Money will also be set aside in the budget to finance a new IT system that will reduce compliance time and tax costs.

From the beginning of 2024, PAYG will be calculated in real time based on current economic results, which according to the government will allow an automatic refund of tax paid in the year if a large loss is reported.

The new system will also allow the submission of state and territory tax returns and forms with increased data sharing with the ATO; it will benefit about 170,000 companies paying payroll tax.

Business activity statements will also be used to pre-fill annual tax returns for around 190,000 companies contracting services in construction, cleaning, freight and couriers, security and the IT sector.

The administration of trusts will be streamlined from July 2024 with technology digitizing paper income reporting for around 30,000 trusts each year.

Microbreweries, distilleries and oil importers will be allowed to waive excise duties less frequently next fiscal year, while fuel and alcohol companies with a turnover of less than $ 50 million will automatically be able to file and pay excise duties on a quarterly basis, giving them $ 100 million in cash. flow boost.

“Our small business and sole proprietorship package will deliver more than $ 800 million in compliance savings each year, enabling SMEs to do what they do best – invest, innovate and drive job growth,” said Mr Frydenberg.

The need to increase productivity is emerging as a major economic theme for the forthcoming federal budget on March 29 and subsequent election campaign.

“We will also continue to support productivity-enhancing investments and structural reforms that build a stronger economy, support private investment and create more jobs,” Mr Frydenberg said in a major pre-budget speech in Canberra on Friday.

Labor finance spokesman Jim Chalmers mentioned the need to “raise the speed limit” for economic growth by increasing productivity in order to achieve growth without inflation – an important part of the opposition’s economic agenda.

In a speech to the Australian Chamber of Commerce and Industry on Tuesday, Mr Chalmers indicated that Labor could consume the coalition, but spending would be measured by its quality and not its quantity.

“We want to focus on the quality of our spending, measured by the extent to which it provides broader, more sustainable growth, creates more jobs or supports more people,” he said.

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